Search smh:

Search in:

People should fear Post sell-off: union

The postal workers' union fears Australia Post's reported plans to slash 900 jobs and pare back mail delivery services could pave the way for privatisation.

Fairfax Media reports the jobs could go as early as Tuesday, as the agency faces forecast losses totalling billions of dollars due to its failing letters business.

It says everyday home delivery of standard-priced mail could also be cut back to two or three times a week, depending on approval to change government regulations.

Finance Minister Mathias Cormann has ruled out selling off Australia Post for now.

Advertisement

"I'm not going to rule out what may or may not happen in the future, but right now we've made a decision that it's not sensible to proceed with a possible sale of Australian Post," he told Sky News on Sunday.

While the government had considered a Commission of Audit recommendation to privatise Australia Post, it didn't think the time was right because of the structural challenges facing the agency, he said.

But the Communications, Electrical and Plumbing Union (CEPU) warns the reported jobs cuts and reforms could be a step towards a future sell-off.

"There's obviously a growing fear in the workforce in terms of privatisation and what that will mean in terms of future employment within Australia Post," CEPU Postal and Telecommunications NSW Secretary Jim Metcher told reporters on Sunday.

"But I would expect the community should also fear privatisation because privatisation brings cuts to services, it brings rising costs to services."